Legal Question in Real Estate Law in Maryland

Re: Issues with General Contractor

You probably realize now that you made a big mistake in signing something you didn't understand without having it reviewed by a knowledgeable contracts attorney. That said, there should have been contract drawings and specifications on which the original contract was based. Unless during the project problems were encountered that the contractor couldn't have been expected to anticipate at the time you signed the contract, or unless you decided to add on to or change the project during construction, the contractor should not be entitled to additional money. It sounds like your "contract" lacked real specification as to what work was to be done and the nature and quality of the materials to be provided.

I suggest you withhold any further draws and see if you can get another contractor to come in and finish the job. This won't be easy, as contractors don't like to finish a job someone else started, but in this economy you can hopefully find someone. Make sure you have them thoroughly checked out before hiring them. Be prepared for them to find faulty workmanship by the first contractor that may need remedial work.

It may end up costing you more, which would entitle you to sue the first contactor for your excess costs, although collecting would be difficult unless you required them to post a bond, which obviously didn't.

Another avenue of assistance if they were licensed in MD is to contact the Maryland Home Improvement Commission and request an investigation. Good luck,

Re: Issues with General Contractor

A well-drafted contract would have addressed most of these issues, including remedies. You now have some tough choices to make. If you think there's a good chance that you can work with these people, some faith that they will finish the job,you have both an idea and the money to reasonably complete the job and get the job done, then you'll want to hold their feet to the fire with the items covered by the contract, draft addendums to cover ommissions, and have penalties for failures of performance.

If, on the other hand, you don't think that a revised agreement will complete the job, you'll likely have to sue the first contractor, engage a second contractor and finish the job.

You'll clearly also want to work with your lender, to the extent that they're willing to extend credit and patience. If they're not willing to help get this thing done, then you'll have to search for alternative financing.